Manhattan's downtown skyline with the Freedom Tower / World Trade Center - Photo by Tony Sargent, (C) 2012
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New Developments: Not enough. Since 2008 there has been very little new development of new buildings. The conversions happening right now are not enough to sustain the increased demand
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- Rents: More people want them so rents are up. Mortgage rates are now down to all time lows so buying even at the entry-level is once again attractive.
- Banks: While still tougher than 2007, banks have been lending again to qualified buyers even in the mid to high end, so the buyer pool has grown again.
- Investment Strategy: Due to political and currency risk in a multitude of countries, the world’s elite see Manhattan real estate as relatively safe financially and free from sudden political shifts at home which could dramatically impact personal wealth.
- Livability: Despite all the TV shows that show the streets of New York as unsafe, living in Manhattan is relatively safe, culturally rich and dynamic. For many already here, the prospect of a suburban move is not attractive, causing them to buy out neighbors and putting pressure on 3-4 bedroom units, of which inventory is especially limited. Come to think of it, perhaps all those TV shows shot in New York are attracting more people here, whether they are right out of school, or older. Manhattan real estate is in high demand.
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